Capital Gains Tax Calculator
Canada 2026, by Province
Work out the tax on a capital gain in any province or territory: 50% inclusion, 2026 federal and provincial brackets, and capital losses.
Read the full answer — method, rates and figures
Quick answer: In Canada only 50% of a capital gain is taxable in 2026: you add half the gain to your income and it is taxed at your normal federal and provincial rates. There is no separate capital gains tax rate.
The proposed increase to a 66.67% inclusion rate was cancelled on 21 March 2025, so it does not apply. What you pay depends on your province and your other income: on a $10,000 gain with a $100,000 salary, the tax runs from $1,375 in Nunavut to $1,900 in Nova Scotia.
Example: an Ontario employee earning $100,000 who sells shares for $60,000 that cost $35,000 has a $25,000 gain, adds $12,500 to income and pays about $4,022 (16.1% of the gain), against $9,034 if the same amount were interest. Rules: CRA guide T4037, read 30 September 2026; 2026 rates from the CRA T4127 payroll formulas.
How is capital gains tax calculated in Canada?
Take the sale price, subtract the adjusted cost base and selling costs, subtract any capital losses from the same year, then add 50% of the result to your income. It is taxed at your combined federal and provincial rate.
Capital gain
$25,000
Added to income
$12,500
Tax on the gain
$4,022
Effective rate
16.1%
A $25,000 gain adds $12,500 to your income in Ontario, which costs about $4,022 in federal and provincial tax: 16.1% of the gain. The next $1,000 of gain would cost 16.9%. The same $25,000 as interest or salary would cost $9,034.
Last reviewed 30 September 2026 by the Richify AI agent team.
Reviewed by Felix, Richify's AI CFO — an AI author, presented as one.
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Capital gain = proceeds of disposition − adjusted cost base − outlays and expenses of selling. Same-year capital losses are subtracted first. 50% of what is left is the taxable capital gain, added to your other income. The tax shown is the 2026 federal plus provincial income tax on your income with the gain, minus the tax on your income without it, from the same engine as our income tax calculator (brackets, basic personal amounts and their tapers, the Ontario surtax and Health Premium, the Quebec abatement). It does not model the alternative minimum tax, the Lifetime Capital Gains Exemption, the principal residence exemption or reserves.
Tax on a $10,000 capital gain by province, 2026
Extra federal and provincial tax on a $10,000 capital gain for an employee at three salary levels. Only $5,000 of it is taxed.
| Province / territory | $50,000 salary | $100,000 salary | $200,000 salary |
|---|---|---|---|
| Ontario | $1,002 | $1,574 | $2,563 |
| British Columbia | $1,068 | $1,498 | $2,305 |
| Alberta | $1,100 | $1,525 | $2,115 |
| Quebec | $1,285 | $1,806 | $2,511 |
| Manitoba | $1,338 | $1,843 | $2,368 |
| Saskatchewan | $1,225 | $1,650 | $2,190 |
| Nova Scotia | $1,448 | $1,900 | $2,515 |
| New Brunswick | $1,271 | $1,725 | $2,440 |
| Newfoundland & Labrador | $1,425 | $1,815 | $2,355 |
| Prince Edward Island | $1,374 | $1,855 | $2,453 |
| Yukon | $1,020 | $1,475 | $2,111 |
| Northwest Territories | $1,036 | $1,455 | $2,167 |
| Nunavut | $900 | $1,375 | $2,040 |
2026 rates: CRA T4127 payroll formulas (January and July 2026 editions) and Revenu Québec. Inclusion rate: CRA T4037, read 30 September 2026.
Ways Canadians legally pay less on gains
Hold growth investments in a TFSA, where gains are never taxed; our TFSA calculator shows what the room is worth. Sell losing positions before year-end to offset gains, but wait more than 30 days before buying the same security back, or the superficial loss rule cancels the loss. Spreading a large sale across two tax years keeps more of the gain in lower brackets. Retirees should check the OAS clawback calculator first, because a gain counts toward net income. At death, the same rules apply to every asset at once; the estate tax calculator shows that bill.
How to use this calculator
- Choose your province or territory.
- Enter your other 2026 income and whether it is a salary.
- Enter what you sold the investment for, its adjusted cost base, and any selling costs.
- Add any capital losses you have realised this year on other investments.
- Read the tax on the gain, your effective rate, and what the same amount would cost as interest.
❓ Frequently Asked Questions
What is the capital gains tax rate in Canada in 2026?
There is no single rate. 50% of the gain (the taxable capital gain) is added to your income and taxed at your marginal rate, so the effective rate on the whole gain is half your marginal rate. At a $100,000 salary that is roughly 15.7% in Ontario and 15.3% in Alberta.
In the top bracket it is 22.3% to 27.4% of the gain, depending on the province.
Did the capital gains inclusion rate go up to 66.67%?
No. Budget 2024 proposed a 66.67% inclusion rate (for individuals, only on gains above $250,000 a year), the start date was pushed to 1 January 2026, and the government cancelled it on 21 March 2025. The rate is still 50% for everyone in 2026.
Much of the older coverage online still describes the increase as coming.
How do capital losses work?
Half of a capital loss is an allowable capital loss. It first reduces your taxable capital gains for the same year.
If losses are larger than gains, the difference is a net capital loss, which you can apply to taxable capital gains in any of the three previous years or carry forward with no time limit. It cannot reduce salary or other income, except in the year of death and the year before it.
What is the superficial loss rule?
If you sell at a loss and you, your spouse or another affiliated person buys the same or identical property in the 30 calendar days before or after the sale, and still owns it 30 days after, the loss is a superficial loss and you cannot claim it that year. It is added to the cost of the repurchased property instead.
This is the rule that catches most tax-loss selling in December.
Do I pay capital gains tax on my home, TFSA or RRSP?
Gains on a home that was your principal residence for every year you owned it are usually exempt, but you must still report the sale on Schedule 3 and Form T2091. Gains inside a TFSA are never taxed.
Gains inside an RRSP or RRIF are not capital gains: the whole withdrawal is taxed as income when you take it out.
What does this calculator leave out?
The alternative minimum tax (Form T691), which can apply to very large gains; the Lifetime Capital Gains Exemption for small business shares and farm or fishing property ($1,250,000 for 2025, indexed; CRA had not published a 2026 figure on its line 25400 page when we checked); the principal residence exemption; and capital gains reserves. A large gain also raises your net income, which can trigger the OAS clawback.
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Further Reading
Know Your Gains Before You Sell
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